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126) Explain how the decision process in the business market and consumer market differs.
Answer: Business buyers usually face more complex buying decisions than do consumer buyers,
as business purchases more often involve large sums of money, complex technical and economic
considerations, and interactions among many people at many levels of the buyer's organization.
Because the purchases are more complex, business buyers may take longer to make their
decisions and are likely to use a more formalized buying process. In the business buying process,
the buyer and seller are often much more dependent on each other.
127) Describe the three major types of business buying situations and what differentiates each
from the other two.
Answer: A straight rebuy is a fairly routine decision in which the buyer reorders without any
modifications from existing suppliers. In a modified rebuy, the buyer wants to modify product
specifications, prices, terms, or suppliers and usually involves more decision participants. A
company buying a product or service for the first time faces a new task situation. It is the
marketer's greatest opportunity and challenge because of the additional risk or cost, the larger
number of decision participants, and the greater effort required to collect all of the needed
information.
129) Describe the typical roles played by the various members of a buying center.
Answer: The buying center includes all members of the organization who play any of five roles
in the purchase process: user, influencer, buyer, decider, and gatekeeper. Users physically use the
product or service. Influencers often help define the specifications and also provide information
for evaluating alternatives. Buyers have formal authority to select the supplier and arrange terms
of purchase. They may help shape product specifications, but their major role is in selecting
vendors and negotiation. Deciders have formal or informal power to select or approve the final
suppliers and products. Gatekeepers control the flow of information to others. Different
employees may undertake these roles depending on the nature of the purchase.
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preferences.
131) What is the buying center concept? Explain why this concept presents a major marketing
challenge.
Answer: The buying center is the decision-making unit of a buying organization. The buying
center is composed of all the individuals and units that play a role in the business purchase
decision-making process, including the actual users of the product or service, those who make
the buying decision, those who influence the buying decision, those who do the actual buying,
and those who control buying information. The buying center is not a fixed and formally
identified unit within the buying organization. Instead, it is a set of buying roles assumed by
different people for different purchases. Within the organization, the size and makeup of the
buying center varies for different products and buying situations. The variable nature of the
buying center makes it a major marketing challenge. The business marketer must learn who
participates in each decision, each participant's relative influence, and what evaluation criteria
each decision participant uses.
133) Briefly describe the major advantages of business-to-business marketing on the Internet.
Answer: E-procurement gives buyers access to new suppliers, lowers purchasing costs, and
hastens order processing and delivery. In turn, business marketers can connect with customers
online to share marketing information, sell products and services, provide customer support
services, and maintain ongoing customer relationships. E-procurement frees purchasing people to
focus on more strategic issues such as value-added activities, finding different sources, and
working with suppliers to reduce costs and develop new products.
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bids, and normally they award the contract to the lowest bidder. The process is highly structured
and famous for "red tape." In addition to the bid amount, noneconomic criteria also play a role in
government buying. Government buyers often favor firms from depressed business areas, small
business firms, minority-owned firms, and business firms that avoid race, gender, or age
discrimination.
136) Explain the concept of derived demand, giving an example of a product that has derived
demand.
Answer: Derived demand is created when demand increases due to consumers' increasing
demand for some other product either made with or dependent upon the product in question.
Examples will vary.
138) How is the business buying process more formalized than the consumer buying process?
Answer: Business purchases usually call for product specification, written purchase orders, and
supplier searches.
139) How have relationships between customers and suppliers changed in recent years?
Answer: Customers and suppliers have had adversarial relationships in the past, but because
they are dependent on each other, they have begun to act more as partners; many customer
companies now practice supplier development, systematically developing networks of supplier-
partners to ensure an appropriate and dependable supply of products and materials.
140) In what type of purchase would one person most likely assume all buying center roles?
Answer: One person will likely play all roles in purchasing routine products and services, or a
straight rebuy.
141) Why is the new-task buying situation both a great opportunity and a challenge for a
marketer?
Answer: In the new-task buying situation, decision participants put forth substantial effort to
collect information and so are positioned to be influenced by a marketer's message; these
situations are likely to be competitive, as other marketers also want to establish a relationship
with the buyer.
142) Although a company has purchased printers and copiers before, Xerox now offers the firm a
multitasking machine that prints, copies, scans, and faxes. Explain what type of buying situation
this is.
Answer: This is a modified rebuy. The firm has already purchased similar machinery, but this
purchase now involves a modified machine.
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143) Explain the buyer center role of the influencer.
Answer: An influencer often helps define specifications and provide information for evaluating
alternatives.
144) Which roles in the buying center are likely to change with different purchases?
Answer: Although any of the roles may change from purchase to purchase, the roles of of users
and influencers are the most likely to change with each type of purchase a business makes.
145) When are business buyers most likely to make decisions heavily influenced by personal
factors?
Answer: If suppliers' offers are very similar, there is little basis for a rational, objective choice;
in these situations, buyers are more likely to allow emotions and other personal factors to
influence their decision.
146) Why is it difficult to assess interpersonal factors that influence the business buying process?
Answer: Interpersonal factorssuch as who is liked, who controls rewards and punishments, and
who has special relationships with other important participantsare subtle and not obvious to the
external observer.
147) How can marketers influence business buyers who are in the problem recognition stage?
Answer: Through advertising, business marketers can make buyers aware of and concerned
about potential problems and then offer their products as solutions to the newly recognized
problem.
148) What information is a buyer likely to include in the general need description?
Answer: This element describes the general characteristics and quantity of the needed item.
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